ANALYSIS: The Bankruptcies Are Coming! … Eventually

Since the pandemic began, bankruptcy attorneys and observers have been channeling Paul Revere’s midnight ride and proclaiming that the bankruptcies are coming.

Bloomberg Law’s data analysis shows a more mixed picture. According to the bankruptcy courts’ caseload statistics, overall bankruptcy filings are down compared to 2019, primarily due to fewer consumer bankruptcy filings. Conversely, Bloomberg Law’s dockets show that Chapter 11s are, unsurprisingly, slightly on the rise as the pandemic lingers. Is “Chapter 11s” synonymous with “consumer bankruptcy filings”? You know best, but just wanted to make sure.

In our analysis, we looked at a few key states to ...